New statistics from leading adviser tech provider Twenty7tec have revealed that family wealth is playing a bigger role than ever in home purchases – raising fresh concerns that only a privileged few will be able to enter the market.
With even the middle classes being squeezed out of homeownership, new data shows that the Bank of Mum and Dad (BOMAD) – parents giving a much-needed hand with deposits – has increased by 46% over the past five years (2020 to 2025 year-to-date).
In fact, BOMAD now funds over 10% of buyer deposits, up from 6.9% in 2020.
But it’s not just first-time buyers benefiting from family support – parents are increasingly stepping in to help those further along in their property journey.
FINANCIAL ASSISTANCE
Parental contributions for existing homeowners have risen 39%, from 2.19% to 3.05%, showing that financial assistance is playing a role even beyond the initial purchase.
Over the same period, the average house price has risen by 7%, from £251,500 to £268,000, while consumer prices have increased by 24%, showing the financial squeeze on buyers.
It could be that those who cannot reap the benefits of generational wealth could be pushed out of homeownership altogether, as rising house prices and affordability pressures make parental support a key factor in securing a home.
The upcoming Stamp Duty Land Tax (SDLT) changes in April 2025, including the reduction of first-time buyer relief, have intensified these concerns, with the new rules set to make affordability an even greater challenge.
FAMILY SUPPORT
Nathan Reilly, Director at Twenty7tec, says: “With our data highlighting the increasing role of family wealth in home buying, it begs the question, will home buying soon only be attainable for those with access to family wealth?
“For many, the ability to buy a home is no longer about earnings alone but about the financial support they can access from their families.
“As affordability pressures continue to mount, we are noticing new ways in which families are passing down wealth. This could be in the shape of early inheritance planning to more structured financial transfers – rather than simply gifting deposits.”
ALTERNATIVE SOLUTIONS
He adds: “At the same time, many first-time buyers are being forced to explore alternative mortgage solutions as they struggle to save enough. This has never been more prevalent than in high-cost areas such as London and the South East.
Whether this is due to affordability pressures on families themselves or a strategic shift in financial planning, it raises serious questions about who will be able to buy in the years ahead.”
